Revenue Regulation No. 7-2023 issued on July 7, 2023, amends certain provisions on Revenue Regulations (RR) Nos. 17-2011, 2-2022, implementing republic act (RA) No. 9005 (Personal Equity and Retirement Account [PERA] Act of 2008).
Section 2 (n) and Section 6 of RR No. 17-2011, as amended, are further amended to read as follows:
“Section 2. Definition of Terms – xxxx
(n): Qualified PERA Contributions – shall refer to the contributions of the Contributor to his PERA, which shall not exceed 200,000.00 per calendar year (if the Contributor is a non-Overseas Filipino), or 400,000.00 per calendar year (if the Contributor is an Overseas Filipino or in representation of an Overseas Filipino), and in accordance with the provisions of Section 6 of these Regulations, subject to the adjustments authorized by the Secretary of Finance, taking into consideration the present value of the contribution using the Consumer Price Index as published by the National Statistics Office, fiscal of the Government and other pertinent factors.”
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“Section 6. Maximum Annual PERA Contributions. – Without limiting the scope and coverage of the term “Qualified PERA Contributions” as defined under Section 2 (n), the aggregate maximum Qualified PERA Contributions in one calendar year for the purposes of illustration shall be as follows:
|Contributor||Maximum Qualified PERA Contribution in Peso*|
|Unmarried Filipino Citizen||Php 200,000.00|
|Married Filipino Citizens and both spouses qualify as a Contributor||Php 200,000.00 for each qualified contributor|
|Married Filipino Citizen and only one spouse qualifies as a Contributor||Php 200,000.00|
|Unmarried Overseas Filipino||Php 400,000.00|
|Married Overseas Filipino whose legitimate spouse is neither an Overseas Filipino nor a qualified contributor||Php 400,000.00|
|Married Overseas Filipino whose legitimate spouse and children (not otherwise disqualified as contributors) of an Overseas Filipino who did not directly open any PERA||Php 400,000.00 cumulative for the spouse and children in the representation of the Overseas Filipino|
|Married Overseas Filipino whose legitimate spouse is also an Overseas Filipino||Php 400,000.00 for each qualified contributor|
|Married Overseas Filipino whose legitimate children are not Overseas Filipinos and are not qualified Contributors||Php 400,000.00 for the Overseas Filipino|
*Or its equivalent in any convertible foreign currency at the prevailing rate at the time of actual contribution.
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Contributions to the PERA amounting to more than Php 200,000.00 or Php 400,000.00, as the case may be accepted by the Administrator under PERA Account, however, they may be accepted by the Administrator as other Savings/ Investment Account after appropriate advice given to the Contributor but shall not be entitled to any benefit under PERA Act.”
Further, Section 4 of RR No. 2-2022 is amended to read as follows:
“Section 4. PERA TCC. –
- UTILIZATION OF PERA TCC – xxxx
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- EXPIRATION OF PERA TCC. – A tax credit certificate issued in accordance with the pertinent provisions of this Regulation, that remains unutilized after five (5) years from the date of issuance, shall be considered invalid and shall not be allowed as payment for internal revenue tax liabilities of the PERA contributor. The amount covered by the ePERA System.
In case of damaged or lost certificate, re-issuance of the certificate will not be available after five (5) years from the date of issuance of the original certificate.”
The increase in the maximum annual PERA contribution shall apply starting January 1, 2023, while the rest of the provisions of these regulations shall take effect fifteen (15) days following its publication in the Official Gazette or in a newspaper of general circulation whichever comes earlier.